The man who cut a deal and decided not to charge or fine two real-estate brokers who withdrew more than $10 million from their company’s trust accounts has lost his job, the Star has learned.
“With the support of RECO’s board of directors, I have acted and effective August 22, Mr. Joseph Richer, the Registrar appointed under the Trust in Real Estate Services Act, 2002, has left RECO,” Brenda Buchanan, CEO of RECO, told the Star in an email on Friday afternoon.
A day earlier, the Star published a story that confirmed Richer had struck a deal with Rui Alves and Fedele Colucci, co-founders of iPro Realty, in the wake of what was initially a $10.5-million shortfall in the company’s trust accounts, which held commission and buyers’ deposits. The regulator did not alert the public of the shortfall for three months and allowed the brokerage to continue operating until Aug. 19.
“As part of its undertaking for the closure of iPro and the termination of Colucci and Alves registrations,” a RECO spokesperson wrote, “RECO’s Registrar agreed to not seek charges under his authority under the Provincial Offences Act, and to not take any further administrative action under the Trust in Real Estate Services Act, 2002.”
The decision created a wave of shock and disbelief among industry leaders.
